National Action Plan on Climate Change wanted to tackle the energy aspect, which resulted in the formulation of the National Mission for Enhanced Energy Efficiency. It was introduced with an objective to promote the market for energy efficiency by encouraging innovation.
The National Mission for Enhanced Energy Efficiency (NMEEE) is one of the eight national missions under the National Action Plan on Climate Change (NAPCC).
This topic would be of importance in the IAS Exam for both Prelims and Mains.
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What is the NMEEE about?
The basis for the introduction of this mission was The Energy Conservation Act of 2001. As per the mission document that was approved in 2010, it was established that the energy efficiency potential in India was to the tune of Rs 74,000 crores. The mission estimates that upon successful execution of the mission, there would be fuel savings to the tune of 23 million tonnes per year, and the greenhouse gas emissions would reduce to the tune of 98.55 million tonnes per year.
For more details on Government actions to protect the environment, candidates can go through the other missions of NAPCC formulated by the Government.
Schemes under NMEEE
Read about the four schemes one-by-one given below:
- Perform Achieve and Trade Scheme (PAT)
- Market Transformation for Energy Efficiency (MTEE)
- Energy Efficiency Financing Platform (EEFP)
- Framework for Energy Efficient Economic Development (FEEED)
Perform Achieve and Trade Scheme
This is applicable for large scale energy-intensive industries. It is a market-based mechanism to improve on the cost-effectiveness of energy efficiency and certification of energy savings that could be traded.
To know more about PAT scheme, check the linked article.
Market Transformation for Energy Efficiency
Give more thrust to innovations to produce appliances that are completely affordable and energy-efficient.
Energy Efficiency Financing Platform
Ensuring that there is adequate finance at reasonable rates for energy efficiency project implementation.
Framework for Energy Efficient Economic Development
Developing fiscal instruments to promote energy efficiency.
This initiative is undertaken with the objective of addressing the concerns of investors and banks that are averse to taking risks. This scheme provides innovative fiscal instruments. BEE started 2 different types of funds with the objective of boosting the confidence of investors and banks thereby avoiding the risk of projects getting stalled due to lack of funds. The 2 types of funds are
- Partial Risk Guarantee Fund for Energy Efficiency
- Venture Capital Fund for Energy Efficiency.
Who are the implementing agencies for NMEEE?
- Bureau of Energy Efficiency (BEE)
- Energy Efficiency Services Limited (EESL)
Results of NMEEE Implementation
- In the 1st cycle of PAT, implemented by BEE, in the period from 2012 to 2015, 400 industries were able to reduce their emissions to the tune of 31 Million Tonnes of Carbon Dioxide.
- In the 2nd PAT cycle which is from April 2016 to March 2019, the target for reducing energy consumption is 8.869 Million Tonnes of Oil Equivalent (MTOE) encompassing 11 sectors.
- The third cycle of PAT has been notified in 2017 and the period is (2017-18 to 2019-20). PAT cycle -III seeks to achieve an overall energy consumption reduction of 1.06 MTOE for which targets have been notified to 116 Designated Consumers concentrating mainly on six sectors which includes Thermal Power Plant, Cement, Aluminium, Pulp & Paper, Iron & Steel and Textile.
- A major success story of the EESL program was the implementation of Unnat Jyoti Affordable LEDs for All (UJALA). This radically transformed India’s access to LED bulbs which has resulted in huge energy savings for the nation and this culminated in the reduction of carbon emissions every year to the tune of 27 million tonnes.
- The PAT Scheme is now being implemented as a rolling cycle where new units will be notified for a period of 3 years every year.
- PAT cycle -IV (2018-19 to 2020-21) will focus on 8 sectors, consisting of 6 existing sectors (mentioned in PAT cycle III) and two new sectors. The new sectors are Petrochemicals and Buildings.
- PAT cycle –V (2019-2020 to 2021-22) commenced from April 2019. Under cycle V, sectors notified are Aluminium, Cement, Chlor-Alkali, Commercial Buildings (Hotels), Iron & Steel, Pulp & Paper, Textile and Thermal Power Plant.
- Under PAT cycle –VI (2020-21 to 2022-23) six sectors such as Cement, Commercial buildings (hotels), Iron and Steel, Petroleum Refinery, Pulp and Paper and Textiles, have been notified.
It is estimated that total energy savings of about 26 MTOE translating into avoiding about 70 million tonnes of CO2 will be achieved by March 2023.
The above details would be of help to candidates preparing for the upcoming IAS exam from the perspective of the mains examination. Candidates can get the detailed and comprehensive UPSC Syllabus at the linked article.
National Mission for Enhanced Energy Efficiency (NMEEE):- Download PDF Here